TITLE:
Measuring Employment Inertia in a Period of Crisis: An Interpretation of Brechling Short-Run Model
AUTHORS:
Samuel Ambapour
KEYWORDS:
Partial Adjustment, Desired Employment Level, Employment Inertia, Short-Run Model
JOURNAL NAME:
Theoretical Economics Letters,
Vol.7 No.4,
June
16,
2017
ABSTRACT: In this paper, the Brechling model
is used to measure employment inertia in five sectors of the Congolese economy
between 1983 and 1993. During that period, the Congolese economy found itself
at a crossroad. On the one hand, the implementation of the 1982-1986 five-year
economic development plans involved considerable infrastructure investment. On
the other hand, given the market reversal observed since 1985, the
infrastructure funding and the tempo became less. A structural adjustment
program had to be undertaken with the World Bank in 1987-1989 with its measures
entirely designed to restore the country’s macroeconomic balance and to enable
it to resume regular and sustainable growth over time. Thus, the result from
the short-run employment model taken over the period in question demonstrates
that there is strong employment inertia in the sectors investigated.